More older employees than ever before – returning to work is the biggest challenge

Demographic trends are set to bring about profound changes in the German labour market in the long term: on the one hand, the population is growing, while at the same time the number of people of working age is tending to decline due to the ageing of society. In particular, the labour force participation of people over the age of 55 is becoming increasingly important.

29 Sep 2025 | Press release no.40

Older people account for almost a quarter of the workforce

Of the 34.2 million employees of working age subject to social insurance contributions, around 7.8 million, or 23 per cent, were aged between 55 and 65 in 2024 – a new record high. Over the past ten years, the proportion of older employees subject to social insurance contributions has thus risen from just under 17 per cent to 23 per cent of the total working-age population.

The main driver is the demographic effect: the baby boomers are entering the older age group. Most recently (February 2025), employment growth among older people continued, with an increase of 66,000 or one per cent compared to the previous year. The trend does not affect all sectors equally: there was a slight decline compared with the previous year in the manufacturing sector (-6,000 or -0.4 per cent), for example, while employment of older people in the service sector continues to grow.

Some industries particularly affected by ageing 

The age structure of the workforce has shifted noticeably in recent years. This development is evident in all sectors of the economy, albeit to varying degrees. In the financial and insurance services sector and in manufacturing, more than a quarter of the workforce is aged between 55 and 65. Public administration also has a relatively high proportion of older employees, at 29 per cent. In the healthcare sector, a good fifth of employees are expected to retire from working life in the next ten years due to their age. 

Returning to work remains the biggest challenge

The structure of unemployment follows this trend. While 580,000 people aged between 55 and 65 were unemployed in 2014, this figure rose to 642,000 in 2024. Between 2014 and 2024, the proportion of older people among all unemployed people of working age rose to around a quarter, while their unemployment rate fell. The reason for this is the increasing labour force participation of older people. Although older employees have a significantly lower risk of becoming unemployed than younger ones. However, if they lose their job, they find it much more difficult to get back on their feet. On average, older people are unemployed for 23 weeks before finding a job that is subject to social insurance contributions; across all age groups, the average is 20 weeks. 

Competitive advantage: age-diverse teams 

Daniel Terzenbach, Member of the Executive Board for Regions, emphasises: "Overall, the labour market for older people in Germany has changed, mainly due to demographic change: the baby boomers have now reached this age group. As a result, we are seeing record employment among older people. Companies that want to remain competitive in the long term also rely on older employees in particular, with their experience and reliability. However, older people need fair opportunities and suitable offers, especially when returning to work. Securing skilled workers means that we must consider all age groups

Further information and data on demographics can be found on our demography page and in the demography report of statistics (available in German).